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Abstract
This research is entitled, information communication technology and the growth of small scale business. The main objective of this study is to examine the impact of information communication technology and growth of small scale businesses. This study is delimited to comprise one hundred and twenty (120) staff of the selected firms which include Jegin Consult Woji Port Harcourt, and Region Agency Mile 3, Diobu, Port Harcourt. Using the Taro Yemen’s formula, the researcher arrived at a sample size of 92. The data for this study were collected from both primary and secondary source. Copies of questionnaire are the main sources of primary source for this study. These data were analyzed in table and percentage. From the analysis, the study find out that the dimension of ICT such as a internet, extranet and intranet influences the measures of growth of small scale business. Based on the above, the study recommends the following among others, that companies should adopt ICT devices to enhance their productivity, that expertise should be mandated to train the existing worker (especially those at the lower level) on the nitty-gritty of the job for maximum productivity, that companies should make available fund to accommodate latest technology and finally that government should ensure prompt and adequate electricity supply, thereby reducing cost of production and thereby increasing productivity.
Table of Contents
Title Page i
Cover Page i
Certification ii
Dedication iii
Acknowledgements iv
Abstract v
Table of Contents vi
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problem 3
1.3 Objectives of Study 3
1.4 Research Questions 3
1.5 Significance of the study 4
1.6 Scope of the study 4
1.7 Limitation of the Study 5
1.8 Definition of Terms 5
CHAPTER 2 7
LITERATURE REVIEW 7
2.1 Conceptual Framework 7
2.1.1Information Communication Technology and its Dimension 8
2.1.2 Dimensions of Information Communication Technology 11
2.1.3 Concept of Growth of Small Scale Business 13
2.1.4 Measures of SMES Growth 15
2.2 Theoretical Framework 17
2.2.1 The Decomposed Theory of Planned Behaviour 18
2.2.2 Innovation Diffusion Theory 18
2.3 Empirical Review 18
CHAPTER 3 21
RESEARCH METHODOLOGY 21
3.1 Research Design 21
3.2 Population of the Study 22
3.3 Sample Size Determination 22
3.4 Sampling Techniques 23
3.5 Method of Data Collection 24
3.6 Method of Data Analysis 25
3.7 Questionnaire Design 25
CHAPTER 4 26
DATA PRESENTATION AND ANALYSIS 26
4.1 Data Collection and Presentation 26
4.2 Data Analysis 27
4.3 Discussion of Findings 31
CHAPTER 5 33
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 33
5.1 Summary 33
5.2 Conclusions 33
5.3 Recommendations 33
References 35
Appendix I 38
Appendix II 39
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Today we live in an information society in which more people must manage more information, which in turn requires more technological support, which demands and creates more information. Electronic technology and information are mutually reinforcing phenomena, and one of the key aspects of living in the information society is the growing level of interactions we have with this complex and increasingly electronic environment. The general consequence is that we deal with large volumes of information, new forms and aggregations of information, and new tools for working with information (Marchionini, 1997). These new tools we use to manage information at corporate, governmental and societal level are tools we must learn to use, pay for, and maintain. The primary tool of the information society is the computer. Microprocessors are used to improve the performance of other technologies, and computers are increasingly used to control and integrate other kinds of information technology (e.g. TV, radio, telephones).
Current literatures have it that ongoing advances in information systems and communication technologies allow organizations to achieve greater levels of productivity, efficiency and service delivery (Brown, 2000; Dawes et al, 1997; Drucker, 1995; Tapscott and Caston, 1993). For example, one electronic mail message replaces the dictation of a memo which is then typed, copied and distributed. Electronic workflow processing allows operational reports to be stored and forwarded to appropriate units for follow-up without a host of manual intervening steps.
One other thing that is crucial as far as ICTs are concerned is that, because of technological and communication innovations, geographic boundaries that once citizens, client and customer service jurisdiction no longer apply. The move toward e-commerce, e-banking and e-governance provides an excellent example of how organizations are no longer restricted to, a contained geographic boundary. In this 21st century, organizations all over the world have come to realize that only those that overhaul the whole of their administrative systems and operations are likely to survive and prosper.
Due to the pressures of competition and the need to maintain a high level of efficiency and productivity organizations have been forced to catch on to the technological craze. Thus in order to place themselves in a favorable position to meet the growing expectations of their customers, and become organizations or co-operations to be reckoned with, more organizations are making use of it to smoothen and speed up the process of administration. They have not only started ensuring that their PC per capita use is one for every staff, but have also started brining PC’s together to form local and wide area networks (Rogers, 2002).
Many organizations use computer systems to run their inventory, control accounting, manage human resources, etc. Businesses are no longer relying on trails of paper work to conduct every day transactions. With an installed modern computer interconnectivity backbone, establishments can keep in touch, synchronize and co-ordinate activities with the utmost ease (Curry, 1999).
Managers now realize that information technology can be used as an engine to speed up processes, eliminate or reduce paperwork, increase the quality of output and service delivery, decrease storage costs, and enhance information sharing and communication (Aluko, 2003). They also realize that they have to achieve not only management / staff wide computer literacy, i.e. knowing how to locate, analyze, store and use information. All staff in modern organizations needs to be able to search and gather data from different sources, analyze them, select the relevant ones and organize them in such a manner as to allow them make decisions based on the information.
1.2 Statement of Problem
Small and medium entrepreneurs in Nigeria engage in business practices for survival as they are local in their nature of operation but they need to forge ahead only through global integration even though the local institutional frame work are not stead fast encouraging the development of small and medium enterprise towards the world economy as those of other countries. Thus, the problem that is identified for this study is how can small and medium scale businesses be developed to meet the challenges presented by globalization in the face of available infrastructure and utility in Nigeria.
1.3 Objectives of Study
The main objective of this study is to examine the impact of information Communication Technology and Growth of small scale businesses.
The specific objectives are as follows:
1. To examine the internet and its impact on the Growth of small businesses.
2. To examine the relationship between intranet and the Growth of small businesses.
3. To examine the relationship between extranet and the Growth of small businesses.
1.4 Research Questions
From the above research purpose, this study seeks to answer the following questions:
1. What is the impact internet on the Growth of small businesses?
2. To what extent does intranet associate the Growth of small businesses?
3. To what extent does extranet associate with the Growth of small businesses?
1.5 Significance of the study
The significance of this study can be highlighted as follows;
To provide for small scale business stakeholders the need to propagate their resourceful processes and practices towards global needs. To incline individuals, agencies and government to create an enabling environment within which small scale businesses can grow. To emphasize on the value of the business processes and practices that are globally oriented. The study will help students and others alike see that the neglect of non-oil sector in Nigeria has been the major factory impending small and medium enterprise for better global status.
1.6 Scope of the study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study is to examine the impact of information Communication Technology and Growth of small scale businesses. The dependent variable is Growth, measured by innovativeness, increased market share and increased sales volume. While independent variable is impact of information communication technology measure by internet, intranet, and extranet.
Geographical Scope: This study is delimited in Port Harcourt with special references to some selected small businesses which include Jegin Consult Woji Port Harcourt, and Region Agency Mile 3, Diobu, Port Harcourt, Rivers.
Unit of Analysis: The unit of analysis in this research involves both senior and junior staffs of Jegin Consult Woji Port Harcourt, and Region Agency Mile 3, Diobu, Port Harcourt, Rivers at the time of carrying out the study.
1.7 Limitation of the Study
The study was limited by the following:
The level of frankness in response to questions by the respondents is quite doubtful.
Finance: Accessing fund for the research work as difficult and this limited the quality of research activity.
Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.
Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.
1.8 Definition of Terms
MODERN: This has to do with latest instrument, design or material used in an organization or company.
TECHNOLOGY: It is an organized totality of knowledge, skill, attitude, tools etc to solve a problem in the most effective and efficient manner.
COMMUNICATION: This is the act of sending and receiving information for proper understanding and assignation.
INFORMATION: What is conveyed or represented by a particular arrangement or sequence of things.
INTRANET: An intranet is a private network accessible only to an organization’s staff, Often, a wide range of information and services are available on an organization’s internal intranet that are unavailable to the public, unlike the Internet.
INTERNET:A global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols.
EXTRANET: An extranet is a controlled private network that allows access to partners, vendors and suppliers or an authorized set of customers normally to a subset of the information accessible from an organization’s intranet.
CHAPTER 2
LITERATURE REVIEW
This chapter attempts to review the works of other people relating to information communication technology. In other words work of those who studied similar topics in the past were examined and reviewed. Again, theoretical concept relating to the study will be examined and explained. The aim is to analyze these concepts and access their application to information communication technology.
2.1 Conceptual Framework
Fig. 1:A Conceptual Framework Showing the Relationship between
Information Communication Technology and Growth of Small Scale Business.
Source: Researcher’s Inference 2019
2.1.1Information Communication Technology and its Dimension
Information and Communication Technology (ICT) play a very important role in helping SMEs to have hedge over competitors in terms of accessibility to global markets. Duan et al, (2002) ascertains that the use of ICT in many organizations has assisted in reducing transactional cost, overcome the constraints of distance and have cut across geographic boundaries thereby assisting to improve coordination of activities within organizational boundaries. In fact, ICT has the potential to improve the core business of SMEs in every step of the business process.
Through the use of information technology, SMEs can gain from developing capabilities for managing information, intensive resources, enjoy reduced transaction costs, develop capacity for information gathering and dissemination of international scale and gain access to rapid flow of information Minton, 2003.
According to a study by Lymer, (1997) it stresses that ICT implementation in the organization which includes SMEs has the potential to reduce costs and increase productivity level. According to them small firms might find cost-effectiveness as a motivating factor to use Internet- commerce for improving communication with trading partners and consumers. Sajuyigbe and Alabi, (2012) also argue that ICTs are being used for strategic management, communication and collaboration, customers’ access, managerial decision making, data management and knowledge management since it helps to provide an effective means of organizational productivity and service delivery.
Furthermore, Ashrafi and Murtaza, (2008) also agree with the assertion that information and communication technologies (ICT) have positive effect on firm performance in terms of productivity, profitability, market value and market share. In the research study of Minton. S, 2003 affirm that buyers and sellers are able to share information and transfer goods across national borders with the use of ICT, which helps to increase access to global supply chains.
According to Chau ,1995, ICT enhances the production process in organizations as monitoring technologies could be used to reduce the number of supervisors required in the process. In the same view Brynjolfsson and Hitt, (2003) confirm that there is a substantial long-term productivity gain with the use of ICT in organizations. Buhalis, 2003 also notes that the application of ICT in businesses causes fundamental changes that can provide powerful strategic and tactical tools for organizations if properly applied and used. This could have great impact in promoting and strengthening SMEs competitiveness. Sakai ,(2002) study also stressed that the extensive use of ICT can allow micro-enterprises with ideas and technologies to remain small and profitable or generate substantial global sales by exploiting their intellectual property over the Internet.
Hence, Onugu, (2005) affirms that ICT enables organizations to decrease costs, increase organizational capabilities and also, assist to shape inter-organizational coordination. Therefore, the use of ICT can help to lower coordination cost and increase outsourcing in organizations. According to OECD (2004) discovers that ICT is able to improve information and knowledge management inside the firm and increase the speed and reliability of transactions for both business-to-business (B2B) and business-to-consumer (B2C) transactions. Lauder and Westall,1997 have given their experts opinion that ICT impacts include cheaper and faster communications, better customer and supplier relations, more effective and efficient marketing, product and service development and better access to information and training. Previous studies identify factors affecting adoption of ICT in SMEs, for instance, Adebayo, Balogun and Kareem, (2013) discover that cost, funds, infrastructure, skills and training, management support and government support attitude are the main factors that affects ICT adoption in Nigeria by SMEs. The study of Sajuyigbe and Alabi, (2012) also confirm that infrastructural, cost of acquisition, lack of finance, skills, management and government support are the main challenges of ICT adoption by SMEs in Nigeria. Pinsonneault and Kraemer, (1993) in their study have categorized internal and external barriers that impede adoption of ICT by SMEs in developing countries. The internal barriers include; owner manager characteristics, cost and return on investment, and external barriers include; infrastructure, social, cultural, political, legal and regulatory. Factors such as owner/manager characteristics, the role of top management, firm characteristics, costs and return on investment, lack of adequate telecommunication infrastructures such as poor internet connectivity, lack of fixed telephone lines for end-users, dial-up access and the underdeveloped state of the Internet Service Providers (ISPs) have been identified by Kapurubandara and Lawson, 2006 as problems that hinder SMEs’ adoption of ICT in a developing country. While Chau, 1995 argues that the owner’s lack of knowledge of ICT technology and perceived benefits is a major barrier to the adoption of ICT. The lack of knowledge on how to use the technology and the low computer literacy are other contributing factors for not adopting ICT Duan et al, (2002) also identify lack of ICT skills and knowledge in SMEs as one of the major challenges faced by all European countries, particularly in the UK, Poland and Portugal.
According to Cloete et al, (2002) finding in a study of SMEs in South Africa they discover that ICT adoption is significantly influenced by lack of access to computer software, other hardware, and telecommunication at a reasonable cost; security concerns and unclear benefits from ICT. A similar study in China by Kunda and Brooks , (2000) confirm that limited diffusion of computers, high cost of internet access and lack of online payment processes are the major factors that directly inhibit ICT adoption by SMEs. Similarly, a survey conducted by Lal (2007) on globalization and the adoption of ICT in Nigerian SMEs discovers that poor physical infrastructure is a major factor inhibiting ICT diffusion. Arendt, 2008 agrees with previous researchers that cost of ICT equipment and networks, software, and re-organization are barriers to ICT adoption in most SMEs. Okwuonu, (2013) concludes that poor communications infrastructure leads to limited access and higher costs. Many SMEs operating in Nigeria still experience this, as they still use outdated equipment and state owned monopolies, which often lead to expensive charges and limited coverage, especially in the rural areas. This discourages SMEs from adopting even the basic ICT application.
2.1.2 Dimensions of Information Communication Technology
Internet
It is a global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols. The Internet is the global system of interconnected computer networks that use the Internet protocol suite (TCP/IP) to link devices worldwide. It is a network of networks that consists of private, public, academic, business, and government networks of local to global scope, linked by a broad array of electronic, wireless, and optical networking technologies. The Internet carries a vast range of information resources and services, such as the inter-linked hypertext documents and applications of the World Wide Web (WWW), electronic mail, telephony, and file sharing.
Intranet
An intranet is a private network accessible only to an organization’s staff. Often, a wide range of information and services are available on an organization’s internal intranet that are unavailable to the public, unlike the Internet. A company-wide intranet can constitute an important focal point of internal communication and collaboration, and provide a single starting point to access internal and external resources. In its simplest form, an intranet is established with the technologies for local area networks (LANs) and wide area networks (WANs). An intranet is a private network that is contained within an enterprise. It may consist of many interlinked local area networks and also use leased lines in the wide area network. Typically, an intranet includes connections through one or more gateway computers to the outside Internet. The main purpose of an intranet is to share company information and computing resources among employees. An intranet can also be used to facilitate working in groups and for teleconferences.
Extranet
An extranet is a controlled private network that allows access to partners, vendors and suppliers or an authorized set of customers – normally to a subset of the information accessible from an organization’s intranet. An extranet is similar to a DMZ in that it provides access to needed services for authorized parties, without granting access to an organization’s entire network. An extranet is a private network organization.
An extranet is a private network that uses Internet technology and the public telecommunication system to securely share part of a business’s information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company’s intranet that is extended to users outside the company. It has also been described as a “state of mind” in which the Internet is perceived as a way to do business with other companies as well as to sell products to customers.
2.1.3 Concept of Growth of Small Scale Business
Growth is, in fact, used as one indicator of effectiveness for small and large businesses and is a fundamental concern of many practicing managers (Crosby, 1999). Ultimately, success and growth will be gauged by how well a firm does relative to the goals it has set for itself. Human resources is a key driver of SMES growth, Since it has to emerge as a strategic business partner helping the top management build an organization that is good not just for today, but for tomorrow and beyond. It is now working with the top management to propel the organization forward. Caplow, (2010) points out that such growth can be particularly disorienting for employee and owner alike: “often the people involved may not realize that anything significant has occurred until they discover by experience that their familiar procedures no longer work and that their familiar routines have been bizarrely transformed. Business owners, then, face a dizzying array of organizational elements that have to be revised in accordance with changing realities. Maintaining effective methods of communications with and between employees and departments, for example, become ever more important as the firm grows. Similarly, good strategic planning practices have to be implemented and maintained. Establishing and improving standard practices is often a key element of organizational growth as well. Indeed, a large business that undergoes a significant burst of growth will find its operations transformed in any number of ways. And often, it will be the owner’s advance planning and management skills that will determine whether that growth is sustained, or whether internal constraints rein in that growth prematurely.
The definition of SMEs differs from one country to another but is often based on employment, assets or a combination of both. Jutla et al, (2002) state that SMEs have been defined against various criteria such as the value of assets employed and the use of energy. National Council of Industries refers to SMEs as business enterprises whose total costs, excluding land, are not more than two hundred million naira ₦200millon (€912,813,22; Onugu,
(2005). However, the Small and Medium Sized Development Agency of Nigeria (SMEDAN) defines SMEs based on the following criteria: a micro enterprise as a business with less than 10 people with an annual turnover of less than ₦5,000,000.00(€ 22,896,35); a small enterprise as a business with 10-49 people with an annual turnover of ₦5 to ₦49,000.000.00(€228,469,28); and a medium enterprise as a business with 50-199 people with an annual turnover of ₦50 to₦499,000.000.00(€228,469,28).
Hence, Small and Medium Enterprise has been the vehicle that drives economic growth and development globally, especially SMEs has contributed immensely to the economic growth in developing countries, Nigeria inclusive. Small and Medium Enterprises (SMEs) occupy a place of pride in virtually every country or state.
Because of their (SMEs) significant roles in the development and growth of various economies, they (SMEs) have aptly been referred to as the engine of growth and catalysts for socio- economic transformation of any country Basil, 2005. Hence, Ongori and Migiro, (2010) agree that SMEs not only help to improve the living standards of people but bring about substantial local capital formation and achieve high levels of productivity and capacity.
However, SMEs in Nigeria do not enjoy this in a substantial way due to the low state of the ICT in the country, so their success and contribution to the economy could also remain low. Even though the use of ICT robs unskilled workers of their jobs, it increases the efficiency and effectiveness with which business activities are operated. The use of digital technology in running businesses increases productivity, so a country that is not very fast in adopting these technologies will not have a fast growing economy Minton, (2003).
2.1.4 Measures of SMES Growth
Innovativeness
Although various definitions of innovation exist, all include the need to complete the development and exploitation aspects of knowledge, not just its invention (Tidd & Bessant, 2009). Innovation is thus more than coming up with good ideas, it also includes making these ideas work technically and commercially. Luecke and Katz (2003), sees innovation as the successful introduction of a better thing or method. It is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services.
Increased Market share
A percentage of total sales volume in a market captured by a brand, product, or company. The portion of a market controlled by a company or product. Market share represents the percentage of an industry or market’s total sales that is earned by a company over a specified time (Nigel, 2001). Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company in relation to its market and its competitors (Nigel, 2001).
It is the percentage of a market accounted for by a specific entity. Market share represents the percentage of an industry or market’s total sales that is earned by a company over a specified period. Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company in relation to its market and its competitors (Wiki, 2017).
Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity. In a survey of nearly 200 senior marketing managers, 67% responded that they found the revenue- “dollar market share” metric very useful, while 61% found “unit market share” very useful.
Marketers need to be able to translate and incorporate sales targets into market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors. The latter will almost always be more difficult to achieve. Market share is closely monitored for signs of change in the competitive landscape, and it frequently drives strategic or tactical action.”
Increasing market share is one of the most important objectives of business. The main advantage of using market share as a measure of business performance is that it is less dependent upon macro environmental variables such as the state of the economy or changes in tax policy.
Increased Sales Volume
The quantity or number of goods sold or services sold in the normal operations of a company in a specified period (Nigel, 2001).
This is used to measure the amount, usually in cartoons/creates among others, of the product being sold a given point in time. This is commonly used as well with product but it could be as used within a service company.
Sales volume is the number of units sold within a reporting period. This figure is monitored by investors to see if a business is expanding or contracting. Within a business, sales volume may be monitored at the level of the product, product line, customer, subsidiary, or sales region.
The quantity or number of goods sold or services sold in the normal operations of a company in a specified period.
Sales volume is the number of units sold within a reporting period. This figure is monitored by investors to see if a business is expanding or contracting. Within a business, sales volume may be monitored at the level of the product, product line, customer, subsidiary, or sales region. This information may be used to alter the investments targeted at any of these areas.
A business may also monitor its break even sales volume, which is the number of units it must sell in order to earn a profit of zero. The concept is useful when sales are contracting, so that management can determine when it should implement cost reductions. This can be a difficult concept to employ when there are many different products, and especially when each product has a different contribution margin.
2.2 Theoretical Framework
The implication of information communication technology has for some time been a subject of debate amongst schools of thought. There is a huge survey of literature, which investigated theoretical and empirical aspects of evaluating the efficiency of information communication technology. However, this section presents relevant theories on information communication technology.
2.2.1 The Decomposed Theory of Planned Behaviour
The theory was developed by Taylor and Todd (1995). The theory postulates that the intention to use a certain technology is influenced by attitude, subjective norm and perceived behavioral control.
2.2.2 Innovation Diffusion Theory
The third theory taken into consideration is the Innovation Diffusion Theory (IDT). This theory explained that individuals’ intention to adopt a technology as a modality to perform a traditional activity. This theory was developed by Roger’s (1983). The critical factors that determine the adoption of an innovation at the general level are the following: relative advantage, compatibility, complexity, trial ability and observability. (Eze, and Egoro 2016:208). Eze, and Egoro (2016:208) had tested the theory on the e-banking adoption. The nominalized factors are complexity, triability and observability.
The foundation theory employed in this work is a theory arising from the decomposed theory of planned behaviour. This theory considers that the use of technology is influenced by attitude, subjective norm and perceived behavioural control. The theory argues that the lesser the ratio of currency outside banks to broad money supply the higher the intermediation efficiency and vice-versa. This suffices that when the currency outside banks diminishes as a result of the increase in the use of electronic forms of payment, particularly ATM and other e-card products, as well as banking habits, the intermediation efficiency will be positive, otherwise it will be negative.
2.3 Empirical Review
Previous studies identify factors affecting adoption of ICT in SMEs, for instance, Adebayo, Balogun and Kareem, 2013 discover that cost, funds, infrastructure, skills and training, management support and government support attitude are the main factors that affects ICT adoption in Nigeria by SMEs. The study of Sajuyigbe and Alabi, 2012 also confirm that infrastructural, cost of acquisition, lack of finance, skills, management and government support are the main challenges of ICT adoption by SMEs in Nigeria. Pinsonneault and Kraemer, 1993 in their study have categorized internal and external barriers that impede adoption of ICT by SMEs in developing countries
The internal barriers include; owner manager characteristics, cost and return on investment, and external barriers include; infrastructure, social, cultural, political, legal and regulatory. Factors such as owner/manager characteristics, the role of top management, firm characteristics, costs and return on investment, lack of adequate telecommunication infrastructures such as poor internet connectivity, lack of fixed telephone lines for end-users, dial-up access and the underdeveloped state of the Internet Service Providers (ISPs) have been identified by Kapurubandara and Lawson, 2006 as problems that hinder SMEs’ adoption of ICT in a developing country. While Chau, 1995 argues that the owner’s lack of knowledge of ICT technology and perceived benefits is a major barrier to the adoption of ICT. The lack of knowledge on how to use the technology and the low computer literacy are other contributing factors for not adopting ICT Duan et al, 2002 also identify lack of ICT skills and knowledge in SMEs as one of the major challenges faced by all European countries, particularly in the UK, Poland and Portugal.
According to Cloete et al, 2002 finding in a study of SMEs in South Africa they discover that ICT adoption is significantly influenced by lack of access to computer software, other hardware, and telecommunication at a reasonable cost; security concerns and unclear benefits from ICT. A similar study in China by Kunda and Brooks, 2000 confirm that limited diffusion of computers, high cost of internet access and lack of online payment processes are the major factors that directly inhibit ICT adoption by SMEs. Similarly, a survey conducted by Lal 2007 on globalization and the adoption of ICT in Nigerian SMEs discovers that poor physical infrastructure is a major factor inhibiting ICT diffusion. Arendt, 2008 agrees with previous researchers that cost of ICT equipment and networks, software, and re-organization are barriers to ICT adoption in most SMEs. Okwuonu, 2013 concludes that poor communications infrastructure leads to limited access and higher costs. Many SMEs operating in Nigeria still experience this, as they still use outdated equipment and state owned monopolies, which often lead to expensive charges and limited coverage, especially in the rural areas. This discourages SMEs from adopting even the basic ICT application.
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